Morgan Stanley upgrades Belgacom to equal-weight

SarahTurner

LONDON (MarketWatch) -- Morgan Stanley upgraded Belgium telecom Belgacom
PROX, +0.68%
to equal-weight from underweight on Wednesday and raised its price target to 29 euros, from 26.5 euros. "Belgacom management has stated that is keen to buy the 25% stake of Proximus owned by Vodafone
VOD, -0.83%VOD, +0.84%
and we think this deal would be high single-digit EPS and FCFE accretive," the bank said. It added that, even if the deal does not materialize, the company's 5% dividend yield means there is probably limited downside for the stock and buy-backs could also take place this year if a cash pile builds up.

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